Six Lessons From Blowing $30 Billion in Brazil

By Raul Gallegos Oct. 2 (Bloomberg) -- Brazil’s OGX Petroleo & Gas Participacoes SA, the flawed jewel of ex-billionaire Eike Batista’s EBX conglomerate, is one step closer to bankruptcy after missing a $45 million dollar debt payment that was due yesterday. If OGX goes under, its largest U.S. creditors, Pacific Investment Management Co. and BlackRock Inc., … [Read more...]

Eike Batista’s Brazilian Empire Was Sunk By More Than Hubris

By Jeb Blount RIO DE JANEIRO, Aug 30 (Reuters) - Fifteen months ago, OGX Petroleo chief executive Paulo Mendonoa was confident that the company he led was on track to become a major independent oil producer, an anchor for Eike Batista's vast Brazilian resource empire. In an interview with Reuters at a Rio de Janeiro office block, Mendonoa showed off bowls of pungent crude … [Read more...]

Batista Shows You Need to Spend Money to Make Money

(Bloomberg) -- Billionaire Eike Batista is pledging as much as $2 billion to shore up the finances of his oil and¬†shipbuilding¬†companies after drilling and output delays. The controlling investor is granting OGX a put option that could require him to buy as much as $1 billion of new stock at a 36 percent premium. He will also buy up to $1 billion of stock in shipbuilder OSX … [Read more...]

Batista Loses $15 Billion as Brazil Awakes From Dream

(Bloomberg) -- When Eike Batista pitched investors on $6 billion in stock offerings over the past six years, he was selling more than his personal empire of interlinking commodity startups. He was selling Brazil. That's why, when Batista's oil venture reduced production targets less than six months after pumping its first barrel of crude -- deepening a sell-off that erased … [Read more...]